Though cryptocurrency is virtual, it doesn't just appear from nowhere. Crypto tokens need to be mined so that they can be put into market circulation, and miners are needed to do this.
Miners also verify new transactions on blockchains that use the Proof of Work mechanism, making them crucial to keeping things secure and transparent.
While many cryptos can be mined, some are more worth it financially than others. So, which cryptos, in particular, are the most profitable to mine?
1. Ethereum (ETH)
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Ethereum is the second-most valuable cryptocurrency in existence next to Bitcoin. Ethereum is, more or less, the most profitable crypto to mine at the moment due to its price, and is considerably easier and less time-consuming to mine than Bitcoin.
In order to effectively mine Ethereum, you'll need a GPU, or graphics processing unit. Alternatively, you can use an ASIC miner if you're not a fan of GPUs. Mining just one Ethereum token can currently get you around $3,000, but this still takes time. On average, it takes around 63 days, or just over two months, to mine a single ETH coin.
On top of this, mining Ethereum can be pretty energy-intensive, so your electricity bill may certainly shoot up if you begin doing so. However, the block time for Ethereum is just 14 seconds.
Ethereum Classic, or ETC, is also a pretty profitable mining option that uses the PoW mechanism. You can mine ETC using a GPU, without specialized ASIC rigs.
2. Litecoin (LTC)
Litecoin is another popular and valuable cryptocurrency that can be mined for a handsome profit. However, Litecoin can now only be mined successfully using an ASIC miner, even though it was initially designed for CPU and GPU mining. But this means that your mining software will probably be pre-installed on your ASIC hardware when you buy it, which will save you a little time and effort.
If you're mining on a budget, however, buying an ASIC rig might be out of the question. Prices of ASIC rigs generally start at around $2,000, which isn't an affordable amount for everyone. So consider mining a CPU or GPU-suitable crypto if you're not looking to invest too much into the venture.
You can receive a reward of 12.5 LTC per mined block, and the time for a new block to be mined is just 2.5 minutes. This currently amounts to just over $1,400, which makes Litecoin mining pretty lucrative.
3. ZCash (ZEC)
ZCash is another solid option for crypto mining. This privacy coin can be mined most effectively using a GPU, though CPUs are an acceptable alternative. However, you cannot mine ZCash using an ASIC rig, so keep this in mind if you prefer this type of hardware.
ZCash miners can earn a reward of around 3.1 ZEC per new block, and each block has a mining time of 75 seconds. Mining ZCash also doesn't require as much electricity as other coins, which is great for miners who are working on a budget.
4. Monero (XMR)
If you're a mining novice, then Monero is a great option for you. This is mainly because Monero can be mined using a CPU, or central processing unit. Because there will already be a CPU in your computer or laptop, you don't have to deal with any high upfront mining costs. Though GPUs are generally preferred by miners, there's nothing wrong with using your CPU to get started.
CPUs are also less energy-intensive than GPUs or ASIC rigs, so this element of the mining process will also be a little kinder on your wallet. The turnaround time for mining a Monero block is also incredibly low, at just 24 seconds. Miners can receive roughly five XMR for each new block they mine, which currently amounts to around $777.
5. Ravencoin (RVN)
Though Ravencoin isn't as popular or valuable as some of the other cryptos on this list, that doesn't make it a poor mining choice. Like Monero, Ravencoin is also a good mining option for beginners as you can mine it with a CPU, meaning the initial costs will remain low. You can also use a GPU for Ravencoin mining if that's your preference.
On top of this, the electricity requirements for mining Ravencoin are pretty low, so you won't be spending too much in that regard, either. These two factors make Ravencoin a very affordable coin to mine.
The block time for Ravencoin currently stands at one minute, and miners can receive a reward of 5,000 RVN per mined block. This currently amounts to around $355, which makes RVN mining a relatively profitable venture.
Mining Can Be Very Profitable if You Do Your Research
Before jumping into mining the most talked-about coin at the moment, make sure you do a little research around it first. Understanding what kind of hardware you need, the energy requirements, and the rewards of mining a specific coin are crucial to determining whether it's the right option for you.
By doing that, you could end up saving yourself a lot of time and money.